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1st phase of mandatory E-invoicing comes into force in Saudi Arabia
Riyadh- December 5, 2021:
The first phase of mandatory electronic invoicing (FATOORAH) regulations have come into force in Saudi Arabia on December 4, 2021. FATOORAH project is expected to produce a major positive impact on the Saudi economy by bringing down hidden economic transactions and promoting fair competition.
The first phase of E-invoicing means the complete cessation of using and issuing handwritten invoices. Now onwards, all tax payers are obliged to generate electronic invoices using compliant e-invoicing systems. Manual and hand-written invoices through text editors or number analysis applications will no longer be valid.
The authority lauded its efforts for spreading enhanced awareness amongst taxpayers and their readiness before the implementation date. This enabled private sector establishments to prepare well with the requirements for complying with E-invoicing.
The ZATCA has launched an E-Invoicing detailed guide explaining pertaining terms, categories subject to the E-invoicing regulations and types of transactions.
The second phase of e-invoicing will be implemented on January 1, 2023, to establish integration between E-Systems of taxpayers and the authority’s regulations